BETHESDA, Md., Nov. 12, 2010 /PRNewswire-FirstCall/ -- American
Capital Ltd. (Nasdaq: ACAS) (the "Company") announced that it has
given notice today to the holders of its secured debt due in 2013
that it will voluntarily prepay $107 million of the debt on
November 29, 2010. With this prepayment, the amount
outstanding under such secured debt will be less than $1.0 billion, causing the interest rate on
the remaining debt to decline to the lowest level under the
governing debt agreements.
The Company's fixed rate notes, representing 83% of the
remaining secured debt, will bear interest at an annual rate of
7.96% and its secured loans and floating rate notes will have an
annual interest rate of LIBOR plus 550 basis points, with a 2%
LIBOR floor. These rates are 1% less than the rates currently
being paid.
The secured debt is due in December
2013 and was issued by the Company in June 2010 in connection with the refinancing of
the Company's $2.4 billion of
then-outstanding unsecured indebtedness. The Company
voluntarily prepaid $200 million of the secured debt in the
third quarter of the year. With the voluntary prepayments,
there is no scheduled amortization of the remaining secured debt
until June 30, 2013.
With this payment, American Capital will have reduced its total
debt by $3.0 billion since its peak
at the end of the second quarter of 2007.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and
global asset manager. American Capital, both directly and
through its asset management business, originates, underwrites and
manages investments in middle market private equity, leveraged
finance, real estate and structured products. Founded in
1986, American Capital has $18
billion in capital resources under management and eight
offices in the U.S., Europe and
Asia. American Capital and
its affiliates will consider investment opportunities from
$5 million to $100 million. For
further information, please refer to www.AmericanCapital.com.
This press release contains forward-looking statements. The
statements regarding expected results of American Capital are
subject to various factors and uncertainties, including the
uncertainties associated with the timing of transaction closings,
changes in interest rates, availability of transactions, changes in
regional, national or international economic conditions or changes
in the conditions of the industries in which American Capital has
made investments.
CONTACT:
Investors - (301)
951-5917
Media - (301)
968-9400
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SOURCE American Capital Ltd.